Salesforce Shares Jump on Strong Outlook

Salesforce.com Inc. (NYSE: CRM) reported its fourth-quarter result on Wednesday and delivered a better-than-expected outlook for 2017 fiscal reporting year. The shares jumped the most in almost a year.

The cloud-computing company posted quarterly earning per share of 19 cents, matching analysts’ estimates of 19 cents per share. Total sales revenue in the quarter rose 25 percent to $1.81 billion, beating analysts’ consensus of $1.79 billion. The company also shows strong ability to generate cash. The operating cash flow in the fourth quarter increased 38% to $459 compared to a year earlier.

What’s more, The San Francisco-based Company issued a better-than-expected guidance. The company forecasts that earnings per share for the current quarter will be between 23 cents and 24 cents, topping analysts’ estimates of 21 cents per shares. For the full fiscal 2017, guidance for the revenue will be $8.08 billion to $8.12 billion, while analyst projected revenue of $8.08 billion.

The company said a wider array of products and a bunch of big deals drive the strong results. Salesforce made more than 600 transactions of more than $1 million for the full fiscal year, including a new deal of more than $100 million in the fourth quarter.

"We hit an all-time high in large transactions in fiscal 2016 as more and more companies look to Salesforce as their trusted advisor," Keith Block, vice chairman, president and COO of Salesforce, said in a statement. “We had over 600 7-figure-plus transactions.”

Salesforce shares jumps 8.25 percent to $67.68 at 2:16 p.m. in New York. The stock had fallen 20 percent over the past two months.

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